Fed holds rates unchanged amid low inflation, financial tumult

[Bill USA]

http://finance.yahoo.com/news/breaking-news--fed-announcement-on-interest-rates-154848233.html

Following the conclusion of a closely watched meeting, the Federal Reserve is keeping interest rates at record lows, citing a weak global economy, low inflation and instability in financial markets.

"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the FOMC said in a statement released at the conclusion of its latest two-day meeting.

In a press conference following the statement's release, Fed Chair Janet Yellen said "the situation abroad bears close watching," an acknowledgement of the recent flare up of volatility in global markets, such as in China.

There has been debate recently over how closely the Fed is watching foreign developments, particularly after Vice Chairman Stanley Fischer in August said, "the Fed's statutory objectives are defined in terms of economic goals for the economy of the United States, but I believe that by meeting those objectives, and so maintaining a stable and strong macroeconomic environment at home, we will be best serving the global economy as well."
(more)

[GoneFishin]

1. It's not about what is good for the U.S.. It's about what is good for the banks that control

the Fed.

And what could be better for those banks than borrowing money for free, then lending it out for 12% to 29%.

[Midnight Writer]

2. Exactly, but of course the Fed is made up of Big Bank alumni

As are most of the Federal regulators. And if they play their cards right, they can all move into extremely lucrative Big Bank positions when they leave their Federal "service".

[GoneFishin]

3. Yep, the OTHER meaning of "service".

[fasttense]

4. Well since salaries are stagnant

And only crappy jobs are available, for the majority of Americans borrowing is the only way to buy anything. So if interest rates went up, it would probobly stop almost all buying in the US. Then who would the corporations in China, India and Mexico sell all their crap to?